Seylan ups pre-tax profit in 1Q 2007

PROFITS: Seylan Bank’s unaudited 1st quarter 2007 financials indicated a pre-tax profit of Rs. 424.75 mn achieving a notable growth of 13.72% over the previous year’s comparative period.

The Bank’s net profit after tax was Rs. 205.82 mn, a reduction of 23.34% of the previous year due to higher corporate taxes.

The financials also saw Seylan Group which comprises subsidiaries Seylan Merchant Bank Ltd. Ceylinco Seylan Developments Ltd and Seylan Bank Asset Management Ltd recording a net profit after tax and minority interest of Rs. 212.59 mn in the 1st quarter 2007.

The Bank’s total income indicated a notable growth of 14.87% reaching Rs. 2.15 Bn mainly on account of its net interest income, growing at 15.26% over same period of 2006.

This was achieved as a result of the Bank reaching a Rs. 100 Bn mark on its deposits and in turn paving way for expansion in core business.

Further the Bank achieved this net profit after tax despite the negative impact of the two tiered taxation of VAT on financial services and corporate taxes had on its profits. Both VAT and corporate taxes totalled Rs. 418.51 mn accounting for 67.03% of operating profit before taxes including VAT on financial services.

It is also noteworthy to mention that the management focus on recovery of dues through effective strategies that resulted in substantial written backs and recovery of B&D Debts of Rs. 187.36 mn boosted the Bank’s profitability.

This was in spite of new regulations focusing on general provisioning for which Rs. 75 mn was made in the 1st quarter 2007.